Q: Overview of the history and structure of the Federal Reserve and the Federal Open Market Committe

A: The Federal Reserve, often referred to as the "Fed," is the central banking system of the United States, established on December 23, 1913, with the enactment of the Federal Reserve Act. The Federal Reserve's structure comprises the Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks, numerous privately owned U.S. member banks, and various advisory councils.

Board of Governors: The seven-member Board of Governors is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the monetary policy of the United States. Governors are appointed by the President of the United States and confirmed by the Senate for staggered 14-year terms.

Federal Open Market Committee (FOMC): The FOMC is composed of twelve members—the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis. The FOMC is responsible for open market operations, which are the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

Federal Reserve Banks: There are 12 regional Federal Reserve Banks, each responsible for a specific geographic area of the U.S. The 12 districts are: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. These Banks are the operating arms of the central bank. They fulfill the role of lending to banks within their district, as well as overseeing the implementation of the Fed's monetary policy.

Member Banks: These are private banks that hold stock in their local Federal Reserve Bank. All nationally chartered banks hold stock in one of the Federal Reserve Banks. State chartered banks may choose to be members (and hold stock in their regional Federal Reserve bank), upon meeting certain standards.

The Federal Reserve’s duties have expanded over the years to include maintaining the stability of the financial system, regulating and supervising banks, providing financial services to depository institutions and the U.S. government, and conducting research on the economy and releasing important economic indicators.

Sources: -[https://www.federalreserve.gov/aboutthefed.htm](Federal Reserve System) -[https://www.federalreserve.gov/monetarypolicy/fomc.htm](Federal Open Market Committee) -[https://www.federalreserve.gov/aboutthefed/federal-reserve-system.htm](Federal Reserve Banks)